Marijuana Packaging Company Never Touches the Plant Itself

A marijuana packaging company named Kush Bottles is showing some real growth and is an example of just how extensive the cannabis business space has become. Many people may not see the marijuana industry beyond the cultivation of marijuana and dispensaries selling the legal drug, but in reality the opportunities go well beyond that. Can you think of any innovative ways of getting into the cannabis business that does not involve actually handling the plant?

Kush Bottles reported its third quarter financial results and the company saw revenues grow by more than 100% when compared to the same period last year.

Kush Bottles does not actually touch the cannabis plant. The company provides customizable packaging products, materials and supplies for the cannabis industry. The company sells its products to businesses (medical and recreational dispensaries, large and small scale processors, and packaging re-distributors) operating in jurisdictions that have some form of cannabis legalization.

During the quarter, Kush Bottles reported $6,119 in net income on $4.7 million in revenue. The company’s gross margin increased by 1%, to 34% and revenue increased by 103% when compared to the same period last year.

The revenue numbers included one month of numbers from CMP Wellness which was acquired on May 1st for $1.5 million and 7.8 million shares of stock. CMP has been selling standard and customized vaporizer products since 2013 and is a private distributor of vaporizers, cartridges and accessories.

Kush Bottles is well capitalized and as of May 31st, the company reported to have $726,692 in cash and a working capital surplus of $4,169,328.

Good Businesses Requires Great Leaders

I know the concept seems simple but the cannabis industry is not like any other market. When we look at any company as an investment opportunity, we always consider the founders and the management team. We look into each individual’s background and track record before making any investment. We always recommend prospective investors to call the company phone line just to see if they answer.

Kush Bottles is led by a management team that continues to execute on its plan and is focused on creating value for shareholders. We continue to monitor the shares as they have rallied more than 20% off its June lows.

We are excited by the opportunity Kush Bottles has to capitalize on a massive ancillary market opportunity and we will continue to monitor how the company executes from here and capitalizes on new international markets.

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Source: MJFeed

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